You’ve worked hard and planned for retirement. Now, with a little creativity, you can leverage your retirement assets to benefit you and your family, reduce federal taxes, and support BCAN far into the future.
Retirement Accounts: A Wise Charitable Gift
Planning for retirement is critical to your financial well being. If you are reading this section, chances are you planned well but you also know that life is unpredictable. The good news is that you can make a significant gift to BCAN with retirement plan assets without adverse effects to your lifetime finances. In fact, leaving retirement plan assets to us can be one of the best financial decisions you can make. Here’s why.
Traditional retirement plans such as Individual Retirement Accounts, 401 (k) and 403 (b) plans are funded with pre-tax dollars. The contributions and earnings that you make to this account are not subject to income tax. When you reach the age of 59½, you can take money out of your retirement account without penalty, but you do have to pay ordinary income tax on the distributions. If funds remain in the account after you pass away, be aware that your heirs may have to pay inheritance and estate taxes in addition to income taxes. Depending on the size of your estate, these combined taxes can be as much as 60% of the remaining account balance. Don’t make this mistake! Leave your retirement plan assets to BCAN. Whatever portion of the assets are left to charity will be exempt from income, inheritance and estate taxes.
When planning to support BCAN and leave assets to loved ones, make certain that you leave your pre-tax assets to qualified charities and your other assets to your loved ones. This strategy assures that your heirs pay less tax on the assets that they receive.
Contact your account custodian today and complete the beneficiary designation forms to maximize the tax savings, take care of your loved ones and leave a legacy at BCAN.
How It Works
- Name or designate Bladder Cancer Advocacy Network as a beneficiary of your IRA, 401(k), or other qualified retirement plan.
- Pass the balance of your retirement assets to BCAN by contacting your plan administrator.
- Important! Tell BCAN about your gift. Your plan administrator is not obligated to notify us. So if you don’t tell us, we may not know.
- Continue to take regular lifetime withdrawals.
- Maintain flexibility to change beneficiaries if your family’s needs change during your lifetime.
- Your heirs avoid the potential double taxation on the assets left in your retirement account.
How do I arrange a gift from my retirement plan?
Simply contact your IRA or retirement plan administrator and request a copy of the Change of Beneficiary Form. You can fill this in as you wish and include BCAN for a portion or all of the remainder of your plan’s assets.
What are the tax implications of a gift of retirement plan assets?
When you designate Bladder Cancer Advocacy Network as the beneficiary for all or part of your qualified retirement plan assets, those assets pass to us free of any tax. However, when these assets are passed to your heirs (other than your surviving spouse), they are subject to federal income tax and may also be subject to federal estate tax (depending upon the value of your estate) as well as various state income, inheritance and estate taxes. Because retirement plan assets are typically the most highly taxed assets when you pass on, they are the ideal choice for charitable gifts, designating other assets to your heirs.